This year is shaping up to be a pivotal one for the cannabis industry.
Cannabis stocks have been climbing since the group began to show signs of profitability late last summer, with the onset of a blue wave igniting optimism around the possibility of nationwide legalization.
A statement issued this week by Senate Majority Leader Chuck Schumer and two other Democratic senators furthered the possibility of a subsequent green wave, with the lawmakers proposing a path to federal legalization.
The move “gives investors some sense that more institutional money is quickly going to be coming into the sector,” Tim Seymour, the founder and chief investment officer of Seymour Asset Management, told CNBCs “ETF Edge” this week. “The timeline is pushed forward.”
That’s “great news” for cannabis companies operating in states with some level of legalization, particularly Curaleaf, Green Thumb Industries, TerrAscend and Cresco Labs, said Seymour, who manages the Amplify Seymour Cannabis ETF (CNBS), a 25-stock portfolio that hit a new record high on Wednesday.
It also benefits Canadian cannabis giant Canopy Growth, which has exposure to TerrAscend and a 2019 agreement to buy U.S.-based operator Acreage Holdings contingent upon stateside federal legalization, he said. Canopy is the largest holding in CNBS.
Published: February 04, 2021